Self-Directed IRA’s

Disclaimer: We are quite familiar with these various tax strategies and the laws relating to them …and use them frequently in our various activities. However, we do not practice law and urge you to consult with your own legal advisers before taking any action relating to our observations or recommendations!

(From Wikipedia, the free encyclopedia)

One of the best tax saving strategies available to the American Taxpayer. It is somewhat involved and requires the services of both legal and financial experts, initially.

However, once properly setup and established, it is reasonably easy to maintain and gives the taxpayer tremendous flexibility in managing his investment portfolio… and

permits the taxpayer to achieve major tax saving.

A self-directed Individual Retirement Arrangement is an IRA that allows the account owner to direct the account trustee to make a broader range of investments than other types of IRAs.

Internal Revenue Service (IRS) regulations require that either a qualified trustee, or custodian, hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets and all transactions and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the self-directed IRA owner for the life of the IRA account. The custodian of a self-directed IRA may offer a selection of standard asset types that the account owner can select to invest in, such as stocks, bonds, and mutual funds, but, by definition, permits the account owner to make other types of investments, including loans. The range of permissible investments is broad but regulated by the IRS.[1]